Is NFT Shariah compliant?

NFT is considered to be halal for a part . If the NFT is a symbol for something Halal or artwork, it can be regarded as an halal. However when an NFT depicts something classified as haram for instance gambling, it might be deemed as haram.

Is NFT trading halal?

Therefore, NFTs are considered halal if they are Shariah compliant, represent something halal, and don't depict haram illustrations . But if the NFT includes something non-compliant or represents something that could risk non-compliance, then it is considered haram.

Is NFT legal in the US?

Are NFTs Legal? As long as you're following copyright laws and selling legitimate assets, creating, selling, and reselling NFTs is legal . Like with most digital innovations, though, regulatory legislation has been slow to catch up and clear guidelines have yet to be established.

Which country banned NFT?

While China banned crypto trading on the mainland in September 2021, the trading of home-grown NFTs persisted but remained in a regulatory gray area.

What is the Islamic view of NFT?

In conclusion, from the Islamic perspective, NFTs and smart contracts are generally permissible, as long as the asset or contract within is sharia compliant . In NFTs especially, an important aspect is that the item must have an actual benefit, as Islam prohibits squandering wealth for useless items.

Is NFT legal in Dubai?

Accordingly, there are no regulations that specifically regulate NFTs but each of the UAE mainlands, i.e., Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) have their respective regulations around crypto or virtual assets which regulate such assets, depending on the actual use of such an ...

Which crypto is Shariah compliant?

Consequently, many cryptocurrencies have been designed to address the limitation of the Bitcoin in the aspect of the sharia principles. The existing cryptocurrencies that claimed to be shariah-compliant includes OneGram, NoorCoin, Bayan Token, and Stellar cryptocurrency [11] .

Is blockchain Shariah compliant?

Shariah compliant blockchain solutions offer a practical alternative eliminating interest from transactions . Blockchain's open ledger makes sure that financial transactions follow moral guidelines, giving Islamic banking a secure and legal platform.

Shariah Experts Ltd has Issued the World’s First NFT-Based Halal Certification on SouqNFT (2024)

LONDON, April 29, 2022 (GLOBE NEWSWIRE) -- Shariah Experts Ltd. has become the world’s first halal advisory firm to issue shariah compliance certificates on blockchain in the form of non-fungible tokens (NFTs).

The halal NFT certificates are minted and issued by the firm on Souq NFT, which is powered by MRHB DeFi, an ethical decentralised finance (DeFi) platform. Singapore-based gold crypto platform Cache.Gold has become the first receiver of the halal certification in the form of NFT.

Shariah Experts is a London-based halal advisory firm founded in 2020 with the vision to achieve shared prosperity for the Muslim world through technological advancements and Industrial Revolution (IR) 4.0 advancements. It aims to guide Web3 projects in the light of halal principles and Islamic rulings. Shariah Experts’ scope includes not only cryptocurrencies, NFTs, decentralized finance (DeFi), and metaverse, but also fintech, traditional Islamic finance, banking, capital markets (sukuk), Takaful, social finance (zakat, waqf, Islamic charity), wealth management and financial planning.

The company is headed by world-renowned Shariah scholars Dr. Farrukh Habiband Mufti Billal Omarjee, who have over 15 years of combined experience. Both scholars have deep and vast experience in the crypto verse and blockchain projects.

“Shariah Experts believe that tokenization of certificates in the form of NFTs can bring more transparency and auditability; hence more confidence and trust which is much needed in the halal industry. NFTs can help prevent forgery and cumbersome authentication methods and slow verification processes,” said Dr Habib, Co-founder of Shariah Experts. He further added. “Other methods are prone to multiple points of failure along the way, such as loss or destruction of a paper or digital certificate. NFTs are a more streamlined and permanent solution.”

These immutable NFTs are the first of their kind that holds records of shariah compliance that are publicly verifiable on a blockchain, providing newfound transparency to the halal certification sector. These NFTs will allow companies to show definitive proof that their business practices and products are certified halal, which means they are ethical according to Islamic jurisprudence principles.

“The trustless nature of NFT-based halal compliance certifications fills a pressing need in the halal economy sector, where certificate forgeries are common or difficult to validate, especially in the halal food industry. NFTs are unique and neither replaceable nor interchangeable — this makes them a perfect technology for immutable certificates,” said MRHB DeFi CEO Naquib Mohammed. “The complete transparency of blockchain also means that anybody can easily cross-check a certificate with Shariah Expert’s public key to verify beyond a shadow of a doubt that it was this specific Shariah advisory firm that minted the NFT and issued the Certificate. By default, NFTs incorporate proof of ownership.”

Guiding Halal Crypto, DeFi, NFT & Metaverse Projects

Shariah Experts, a global leader in guiding Crypto, DeFi, NFT, Metaverse projects in the light of Islamic principles, focuses on streamlining blockchain technology among the Muslim masses. It offers high quality shariah advisory and consultation services to its clients with innovative ideas and tech-driven projects.

Shariah Experts Ltd has Issued the World’s First NFT-Based Halal Certification on SouqNFT (2024)

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Shariah Experts Ltd has Issued the World’s First NFT-Based Halal Certification on SouqNFT? ›